Under a reorg at AT&T’s WarnerMedia, Tony Goncalves, CEO of Otter Media, will now lead the development of the forthcoming WarnerMedia direct-to-consumer service.
In addition, Andy Forssell, most recently COO of Otter Media and former CEO of Hulu, will move into the role of EVP and GM of the new, as-yet-unnamed streaming service, reporting to Goncalves.
With the changes, Brad Bentley is exiting WarnerMedia Entertainment group as GM and executive VP for direct-to-consumer development after six months in the role.
The executive reshuffling comes as WarnerMedia has moved Otter Media under the oversight of the WarnerMedia Entertainment group, headed by Bob Greenblatt, chairman of WarnerMedia Entertainment and Direct-To-Consumer. Goncalves, who continues to oversee Otter’s existing brands and services, now reports to Greenblatt.
Kevin Reilly, president of TBS, TNT and TruTV and chief content officer for the direct-to-consumer service, will remain in that position reporting to Greenblatt.
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Last November, WarnerMedia CEO John Stankey had appointed Bentley, previously a longtime DirecTV exec, into the GM role overseeing all aspects of the company’s direct-to-consumer streaming service. The exit of Bentley, who played a similar role in the launch of DirecTV Now, suggests the WarnerMedia subscription VOD product may have been missing deadline goals or other targets.
WarrnerMedia’s direct-to-consumer SVOD service will pull together content from HBO, Warner Bros. and Turner as well as original programming. It’s slated to debut in the U.S. in a beta form in the fourth quarter of 2019, with a full launch in Q1 2020.
“I’m confident that with Tony and Andy leading our product and operations, Kevin and HBO’s Casey Bloys guiding our content strategy, and with Bob at the helm, we have a formidable team creating a curated streaming service with a winning combination of content and features,” Stankey said in a statement.
About Bentley, Stankey added, “I also want to thank Brad for his leadership in bringing the project to this point in record time.”
AT&T has set big expectations for the new WarnerMedia SVOD service, which will vie against not only Netflix, Hulu and Amazon Prime Video but also Disney Plus, slated for a Nov. 12 launch. AT&T CEO Randall Stephenson, at an investment conference this month, said it will “become a significant driver of our growth over the next few years as we stand this product up… We think this is in the tens of millions of subscribers that we will have on this.”
Otter Media’s business comprises Fullscreen, focused on branded content and influencer marketing; anime streaming service Crunchyroll; Rooster Teeth, focused on sci-fi, gamer and anime-style content; and VRV, a subscription VOD aggregation service.
Greenblatt, in a statement, said, “The thriving Otter Media businesses are important to this company and I’m happy to welcome Tony and Andy to our direct-to-consumer team. This group’s expertise will be invaluable to our new streaming service as we aim to bring content from the best storytellers in the world to an audience that expects the highest quality digital experience.”
WarnerMedia had already taken several steps to restructure Otter Media, after AT&T bought out Chernin Group’s stake in the venture. The changes included shifting Machinima from Warner Bros.’s aegis to Otter Media, which then effectively shut down Machinima and folded its remaining staff into groups at Fullscreen and Rooster Teeth. Otter Media also shut down the Fullscreen Live in-person tour group and the Fullscreen Direct fan-engagement service.
In addition to its operating business units, Otter Media’s portfolio includes a majority stake in digital-first studio Gunpowder & Sky and minority stakes in Reese Witherspoon’s Hello Sunshine content company for women and Mars Reel high school athletes.